MGC vs. MGK
Compare and contrast key facts about Vanguard Mega Cap ETF (MGC) and Vanguard Mega Cap Growth ETF (MGK).
MGC and MGK are both exchange-traded funds (ETFs), meaning they are traded on stock exchanges and can be bought and sold throughout the day. MGC is a passively managed fund by Vanguard that tracks the performance of the CRSP US Mega Cap Index. It was launched on Dec 17, 2007. MGK is a passively managed fund by Vanguard that tracks the performance of the MSCI US Large Cap Growth Index. It was launched on Dec 17, 2007. Both MGC and MGK are passive ETFs, meaning that they are not actively managed but aim to replicate the performance of the underlying index as closely as possible.
Scroll down to visually compare performance, riskiness, drawdowns, and other indicators and decide which better suits your portfolio: MGC or MGK.
Key characteristics
| MGC | MGK | |
|---|---|---|
| YTD Return | 8.58% | 8.61% |
| 1Y Return | 30.61% | 38.61% |
| 3Y Return (Ann) | 9.22% | 9.59% |
| 5Y Return (Ann) | 14.31% | 17.43% |
| 10Y Return (Ann) | 13.17% | 15.67% |
| Sharpe Ratio | 2.49 | 2.35 |
| Daily Std Dev | 11.96% | 16.15% |
| Max Drawdown | -52.20% | -48.36% |
| Current Drawdown | -2.03% | -2.62% |
Correlation
The correlation between MGC and MGK is 0.95, which is considered to be high. That indicates a strong positive relationship between their price movements. Having highly-correlated positions in a portfolio may signal a lack of diversification, potentially leading to increased risk during market downturns.
Performance
MGC vs. MGK - Performance Comparison
The year-to-date returns for both investments are quite close, with MGC having a 8.58% return and MGK slightly higher at 8.61%. Over the past 10 years, MGC has underperformed MGK with an annualized return of 13.17%, while MGK has yielded a comparatively higher 15.67% annualized return. The chart below displays the growth of a $10,000 investment in both assets, with all prices adjusted for splits and dividends.
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MGC vs. MGK - Expense Ratio Comparison
Both MGC and MGK have an expense ratio of 0.07%, making them cost-effective options compared to the broader market, where average expense ratios typically range from 0.3% to 0.9%.
Risk-Adjusted Performance
MGC vs. MGK - Risk-Adjusted Performance Comparison
This table presents a comparison of risk-adjusted performance metrics for Vanguard Mega Cap ETF (MGC) and Vanguard Mega Cap Growth ETF (MGK). Risk-adjusted metrics are performance indicators that assess an investment's returns in relation to its risk, enabling a more accurate comparison of different investment options.
Dividends
MGC vs. MGK - Dividend Comparison
MGC's dividend yield for the trailing twelve months is around 1.29%, more than MGK's 0.47% yield.
| TTM | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
MGC Vanguard Mega Cap ETF | 1.29% | 1.35% | 1.65% | 1.17% | 1.45% | 1.81% | 2.10% | 1.83% | 2.14% | 2.11% | 1.81% | 1.86% |
MGK Vanguard Mega Cap Growth ETF | 0.47% | 0.50% | 0.70% | 0.41% | 0.65% | 0.85% | 1.12% | 1.23% | 1.53% | 1.43% | 1.25% | 1.29% |
Drawdowns
MGC vs. MGK - Drawdown Comparison
The maximum MGC drawdown since its inception was -52.20%, which is greater than MGK's maximum drawdown of -48.36%. Use the drawdown chart below to compare losses from any high point for MGC and MGK. For additional features, visit the drawdowns tool.
Volatility
MGC vs. MGK - Volatility Comparison
The current volatility for Vanguard Mega Cap ETF (MGC) is 4.35%, while Vanguard Mega Cap Growth ETF (MGK) has a volatility of 6.01%. This indicates that MGC experiences smaller price fluctuations and is considered to be less risky than MGK based on this measure. The chart below showcases a comparison of their rolling one-month volatility.